Avago Technologies Ltd (AVGO): Today's Featured Electronics Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Avago Technologies ( AVGO) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Avago Technologies fell 80 cents (-2.4%) to $33.03 on average volume. Throughout the day, 2.3 million shares of Avago Technologies exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $32.82-$33.70 after having opened the day at $33.62 as compared to the previous trading day's close of $33.83. Other companies within the Electronics industry that declined today were: GT Advanced Technologies ( GTAT), down 15.2%, Memsic ( MEMS), down 12.5%, IPG Photonics Corporation ( IPGP), down 11.9%, and Quicklogic Corporation ( QUIK), down 10.9%.
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Avago Technologies Limited engages in the design, development, and supply of analog semiconductor devices with a focus on III-V based products. Avago Technologies has a market cap of $8.28 billion and is part of the technology sector. The company has a P/E ratio of 15.2, equal to the average electronics industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 17.2% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Avago Technologies a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Avago Technologies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Enova Systems ( ENA), up 77.3%, Sanmina-SCI ( SANM), up 16.8%, Nortech Systems Incorporated ( NSYS), up 12.7%, and Winland Electronics ( WEX), up 11.7%, were all gainers within the electronics industry with Taiwan Semiconductor Manufacturing ( TSM) being today's featured electronics industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the electronics industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the electronics industry could consider ProShares Ultra Short Semiconductor ( SSG).

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